Close this search box.

CVS Health Business Model Canvas

CVS Health Business Model Canvas
Photo by Accuray, Edited by Grey Knight

A Brief History CVS Health

CVS Health Corporation, formerly known as Consumer Value Stores, was established in 1963 by Stanley and Sidney Goldstein and Ralph Hoagland. The first store opened in Lowell, Massachusetts, and by 1964, the company had grown to include 17 stores.

In the 1980s, CVS began acquiring other pharmacy chains, which led to rapid expansion across the United States. By 1990, CVS had over 400 stores in 23 states. In 1996, the company merged with Caremark to form CVS Caremark Corporation, creating one of the largest pharmacy benefits management companies in the United States.

Over the years, CVS continued to acquire other companies, expanding its services to include retail pharmacies, online pharmacy services, and healthcare clinics. In 2014, CVS Caremark Corporation officially changed its name to CVS Health Corporation to reflect its broader healthcare services.

Today, CVS Health Corporation is one of the largest healthcare companies in the world, with over 9,900 retail locations and 1,100 MinuteClinic locations across the United States. The company also offers pharmacy benefits management services and operates long-term care pharmacies. CVS Health Corporation is dedicated to providing accessible and affordable healthcare services to its customers.

CVSHealth Purpose
Source: cvshealth

Who Onws CVS Health?

CVS Health Corporation is owned by a diverse group of shareholders, including institutional investors, mutual funds, and individual investors. The top 10 shareholders of CVS Health Corporation as of the most recent filing are Vanguard Group, BlackRock Inc., State Street Corp, FMR LLC, Wellington Management Company, Dodge & Cox, Capital Research Global Investors, Geode Capital Management, Massachusetts Financial Services Co, and Capital World Investors. These shareholders collectively hold a significant portion of the company’s outstanding shares and play a key role in influencing its corporate strategy and decision-making.

CVS Health Mission Statement

CVS Health Corporation’s mission is to improve the lives of those we serve by providing access to high-quality healthcare services, delivering innovative solutions, and advancing the health and well-being of our communities. We are committed to making healthcare more accessible, affordable, and convenient for our customers, while also investing in research and education to drive positive change in the industry. Our dedication to creating healthier communities is at the core of everything we do, and we strive to make a lasting impact on the overall health and wellness of our society.

How CVS Health Makes Money?

CVS Health Corporation operates as a pharmacy and healthcare company, generating revenue through a variety of sources. The company earns money primarily through its retail pharmacy sales of prescription drugs, over-the-counter medications, and other healthcare products. In addition, CVS Health operates a pharmacy benefit management (PBM) business, which generates revenue through managing prescription drug plans for employers, insurance companies, and government agencies. The company also earns revenue from its healthcare services, such as MinuteClinic walk-in medical clinics located in CVS stores. Overall, CVS Health Corporation has a diverse revenue stream that encompasses retail sales, PBM services, and healthcare services.

CVS Health Business Model Canvas

A Business Model Canvas is a strategic management tool that allows organizations to visualize, assess, and modify their business model. It provides a clear and concise framework for understanding the key aspects of a business and how they work together to create value for customers and generate revenue. In this document, we will detail the Business Model Canvas for CVS Health Corporation, a leading healthcare and retail company.

Customer Segments:

– Individual consumers
– Healthcare providers
– Health insurance companies

Value Propositions:

– Convenient access to healthcare services
– Wide range of pharmacy and retail products
– Integrated healthcare solutions


– Retail stores
– Online platform
– Healthcare clinics

Customer Relationships:

– Personalized healthcare services
– Loyalty programs
– Customer support services

Revenue Streams:

– Prescription sales
– Retail product sales
– Health services

Key Resources:

– Pharmacies and distribution centers
– Healthcare professionals
– Technology infrastructure

Key Activities:

– Prescription fulfillment
– Retail operations
– Healthcare services delivery

Key Partners:

– Pharmaceutical companies
– Health insurance providers
– Healthcare professionals

Cost Structure:

– Labor costs
– Inventory expenses
– Technology investments

CVS Health’s Competitors

CVS Health Corporation faces competition from a range of companies in the healthcare and retail industries. Some of its top competitors include Walgreens Boots Alliance, Rite Aid Corporation, Walmart, Express Scripts, and UnitedHealth Group. These companies offer similar services and products, such as retail pharmacies, healthcare services, and prescription drug plans, and compete with CVS Health Corporation for market share and customer loyalty. CVS Health Corporation must continuously innovate and adapt to stay ahead in the competitive landscape of the healthcare and retail sectors.

CVS Health SWOT Analysis


1. Strong brand recognition and reputation
2. Diverse revenue streams from pharmacy, health care services, and retail
3. Extensive network of retail stores and pharmacies
4. Established partnerships with health care providers and insurance companies


1. Dependence on prescription drug sales
2. Limited international presence compared to competitors
3. Increased competition from online pharmacies and retail giants entering the health care space


1. Expansion of health care services and clinics
2. Growth potential in the specialty pharmacy and chronic disease management market
3. Demand for telehealth services and digital health solutions


1. Regulatory changes and government policies impacting the pharmacy and health care industry
2. Disruption from non-traditional competitors and new entrants in the health care market
3. Economic downturn and changes in consumer spending patterns

Concluding Analysis

In summary, CVS Health Corporation’s business model has proven to be a successful combination of retail pharmacy, healthcare services, and health insurance. The company’s strategic acquisitions and partnerships have positioned it as a leader in the healthcare industry, providing a wide range of services to consumers. Looking ahead, I believe that CVS Health Corporation is well-positioned to continue its growth and expansion, particularly as the demand for healthcare services and prescription medications continues to rise. As an analyst, I am optimistic about the future of the business and see potential for further innovation and success in the coming years. With a strong foundation and a focus on meeting the evolving needs of consumers, I anticipate continued success for CVS Health Corporation in the future.

Additional Resources

To keep learning and advancing your career, we highly recommend these additional resources:

Business Model Canvas of The Top 1,000 Largest Companies by Market Cap in 2024

A List of 1000 Venture Capital Firms & Investors with LinkedIn Profiles

Peter Thiel and the 16 Unicorns: The Legacy of Thiel Fellowship

9 Biggest IPOs of All Time

List of Fortune 500 Companies in 2023

Receive Daily Startup News

Explore The Pulse of Global Innovation

Delve into the latest news, trends, and insights from startup ecosystems around the world. Stay informed, inspired, and connected to the dynamic landscape of entrepreneurship.

Read by professionals from Y Combinator, AngelPad, 500 Global, and more.

login to your account